In a stark warning to businesses exploiting pandemic support schemes, a Blackburn tour operator faces over two years in prison for a brazen Covid loan fraud totaling £100,000. Raja Imtiaz, 52, deliberately manipulated the system designed to help struggling companies survive the economic crisis.
The Covid Loan Fraud Scheme Uncovered
Imtiaz orchestrated his Covid loan fraud during June and July 2020, submitting two separate applications for £50,000 Bounce Back Loans. Consequently, he falsely declared on his second application that it represented his company’s only request. However, investigators discovered he had already received the first payment weeks earlier.
Key facts about the fraud:
- Two fraudulent applications submitted to different banks
- Applications made just weeks apart during peak pandemic
- False declarations about previous loan applications
- Total fraudulent obtainment: £100,000
Court Sentencing and Consequences
At Preston Crown Court on September 18, 2025, Imtiaz received a 26-month prison sentence. Additionally, the court disqualified him as a company director for six-and-a-half years. This case highlights the serious consequences of Covid loan fraud.
David Snasdell, Chief Investigator at the Insolvency Service, emphasized: “The rules were crystal clear – businesses were only allowed a single loan. His dishonesty has landed him behind bars.”
Understanding Bounce Back Loan Rules
The Bounce Back Loan scheme launched in May 2020 to provide emergency support. Importantly, businesses could only access one loan maximum. Therefore, Imtiaz’s actions constituted clear Covid loan fraud.
Scheme key features:
- Maximum loan amount: £50,000 per business
- Government-backed guarantees
- Fast-track application process
- Single application restriction
Broader Implications for Business Fraud
This case represents growing enforcement against pandemic-related financial crimes. Authorities continue pursuing Covid loan fraud cases aggressively. Moreover, regulators have pledged ongoing action against scheme abuse.
The investigation revealed Imtiaz controlled Al Fayroz Travel & Tourism Limited, incorporated in 2017. Despite claiming confusion about his first application’s status, evidence showed clear intentional deception.
FAQs About Covid Loan Fraud Cases
What is Covid loan fraud?
Covid loan fraud involves dishonest applications for pandemic support schemes, including false declarations, multiple applications, or misrepresentation of business circumstances.
What penalties can offenders face?
Offenders can receive prison sentences, director disqualifications, asset seizures, and repayment orders depending on the fraud scale and circumstances.
How are authorities detecting fraud?
Authorities use advanced data analytics, whistleblower reports, bank cooperation, and insolvency proceedings to identify suspicious patterns and applications.
What was the Bounce Back Loan scheme?
The government-backed scheme provided emergency funding to small businesses during COVID-19 lockdowns, offering loans up to £50,000 with favorable terms.
Can businesses still apply for these loans?
No, the Bounce Back Loan scheme closed to new applications in March 2021, though existing loans continue under their original terms.
How widespread was Covid loan fraud?
Official estimates suggest billions of pounds were lost to fraud across various pandemic support schemes, with ongoing investigations identifying new cases regularly.
